For its inspecting cost pool, Hose Company expected overhead cost of $200,000 and 4,000 inspections. The actual overhead cost for that cost pool was $240,000 for 5,000 inspections. The activity-based overhead rate used to assign the costs of the inspecting cost pool to products is


$60 per inspection.


$48 per inspection.


$40 per inspection.


$50 per inspection

You figure ABC rates the same way you do traditional ones:
estimated overhead costs/estimated activity driver